E-commerce fulfillment leader
We cannot talk about distribution without talking about one of the biggest players in the world, AMAZON. Many thinks that Amazon is just a pre-order company but think again. It provides order picking services, but it mainly provides an e-commerce sales platform, so AMAZON has three proposals: a transactional site, the preparation of orders and the sale via its transactional platform of your products. Nevertheless, AMAZON is a must. 50% of searches for products on the internet are started directly on this transactional site.
Many small and medium-sized businesses use the AMAZON site as a lever to develop their products and customers. Every e-commerce vendor must have a global digital strategy that includes AMAZON to reach markets that are inaccessible to them. A local salesman in a remote area would never have thought of selling his products in California for example. The opportunities of globalization and the economic context are facto receptive (very receptive) to unexpected sales. Achieving growth means expanding its markets and increasing the geographic area served by our reach. The e-commerce sales platforms allow an almost global expansion of markets.
For the preparation of your orders to ship, it opens three potential options: do it yourself, use the services of Amazon (Fulfill By Amazon-FBA), or use the services of a third-party logistic provider (3PL) called Fulfill By Merchand (FBM). The first option gives you extreme workload and management costs that could compromise the sustainability of your business. The use of Amazon can sometimes be very expensive and is governed by several restrictions and difficulties depending on your product category. The last option still allows you to sell on the Amazon platform, but you use a provider to support your growth and reduce your costs. You’ll get flexibility in order volume management and increased visibility of your product inventories.
Several large banners have begun to follow suit, WALMART and BESTBUY offer a marketplace where the trader sells his products and ships in “drop ship” directly to the customer. In the case of WALMART, if your product is sold at Walmart and is available in their warehouses then you will not have an order. You will receive orders when they are back order. EBAY, although it has become a second-tier player, remains a site that can help companies liquidate their obsolete inventories or end-of-lines. There are also free sharing platforms that allow the sale of products on the internet at a lower cost like KIJIJI, LESPACS, FACEBOOK BLACKMARKET and many others that allow the sale between individuals. Free and with a fast diffusion(circulation), these sites allow all to sell there. Many companies use these sites to attract customers who do not believe they can afford the new.